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The Leadville Mill <br />1.0 INTRODUCTION & BACKGROUND <br />M1990-057 <br />INTRODUCTION & BACKGROUND <br />Page 1 -1 <br />The Leadville Mill (the Mill) is owned by Construction Investments, LLC (CI) and <br />operated by Union Milling Company, LLC (UMC) with their corporate offices located <br />in Littleton, Colorado. UMC was formed on September 19, 2008. The Leadville Mill <br />was formerly included as a facility permitted under Calais Resources, Permit M1990- <br />057 (the Permit). UMC is permitting the facility as a separate standalone 110(d) <br />regulated custom ore processing mill which will occupy a 9.9ac permit area. <br />The facility is located in Lake County, about 1.5mi west of Leadville, Colorado. The <br />Mill has a Lake County Conditional Use Permit (CUP) granted on September 9, 2011; <br />and other permits are summarized in the Colorado Department of Reclamation <br />Mining and Safety ( CDRMS) permit application (Sec. 7.0, Exhibit F). The Mill was <br />constructed in 1989 and operated through 1991. The Mill has an existing <br />reclamation bond of $51,700 which was revised on February 7, 2012. <br />The following mine permit application includes an environmental response to CDRMS <br />September 30, 2010 Hard Rock, Metal, and Designated Mining Operations <br />regulations. On November 23, 2011 CDRMS designated the Mill a 110(d) facility <br />which requires compliance with regulation; <br />• Sections 6.3.1 through 6.3.12 (Exhibit A -Legal Description; through Exhibit L- <br />Man Made Structures); <br />• Section 6.4.21 (Exhibit U- Designated Mining Operation (DMO) Environmental <br />Protection Plan(EPP)); <br />• Section 6.5. (Geotechnical Stability) and; <br />• Rule 8 (Emergency Notification by All Operators, Emergency Response Plan <br />for Designated Mining Operations and Emergency Response Authority of the <br />Office). <br />1.1 SITE BACKGROUND <br />The Mill is an existing gold, silver, lead, zinc, and copper ore processing facility <br />located in the Northeast Quarter of the Northeast Quarter of Section 33, and the <br />Southeast Quarter of the Southeast Quarter of Section 28, Township 9 South, Range <br />80 West of the 6th Principal Meridian, Lake County Colorado. The mill site is a <br />Version 1.0 April2013 <br />